BP (BP-) could face a bill of as much as $100 billion to mop up the environmental and economic damage caused by the oil spill.
Louisiana Treasurer John Kennedy said the cost of the chaos could range from $40 billion to $100 billion - significantly more than the $20 billion it has already set aside in an escrow account.
Chief executive Tony Hayward came under heavy fire for failing to spot the warning signs before the explosion on 20 April in which 11 people died.
He was grilled by angry senators at a Congressional hearing, accusing him of safety failings and corporate complacency.
Democrat Henry Waxman accused BP of cutting "corner after corner to save a million dollars here and a few hours or days there" and said the Gulf coast was now "paying the price".
"There is not a single email or document that shows that you paid even the slightest attention to the dangers at this well," he lambasted.
"There is a complete contradiction between BP's words and deeds. You were brought in to make safety the top priority of BP, but under your leadership, BP has taken the most extreme risks."
However, Hayward maintained that it was too early to say what had caused the incident.
He added that the group is doing everything within its power to contain the oil spill 60 days after the initial explosion. "We continue to do more to increase our operational flexibility and collection capability," Hayward said. "We will not rest with our containment efforts until the well is permanently killed. I know it feels like this all takes a long time but we are compressing operations that normally take months into days."
Credit rating agency Standard and Poor yesterday piled further pressure on the company by slashing its rating by two notches to A after the estimate on the rate of spillage rose to 60,000 barrels of oil a day from 40,000.
Standard & Poor's analyst Simon Redmond said: "In our view, other fines, penalties, and litigation could add significantly to the costs likely to be borne by BP over the next several years."
He also warned of further potential downgrades.
iii.co.uk
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